The benefits of predictive technology in programmatic mobile advertising

Mediation: optimizing fill rate and response time

Partnering, integrating and working with multiple demand partners is time-consuming, but there is also a technical challenge: mobile publishers only have a limited time to find the best ad and display it in a mobile application, and even less time on a mobile website.

How does one request an ad in real time from 100 partners in less than 100ms knowing their average response time varies between 100ms and 500ms? Furthermore, how can one obtain a 100% fill rate when the probability that each partner will return an ad usually varies between 5% and 20%?

Regular RTB requires each demand partner to reply in less than 100ms and will ignore all the partners that are unable to do so. MADGIC’s predictive technology is more flexible and tolerates a response time over 500ms.

For displaying a single ad, regular RTB can send over 25 bid requests, returning over 5 bids, resulting in high server costs for everyone. MADGIC, using sophisticated algorithms and large amounts of data instead of brute force, will send only 2-3 ad requests and display the first ad that it gets, reducing its partners’ server costs by a factor of 10


Optimization: finding the best ad

How does one find the best ad for a given user, at a given time and location? And how does he maximize his mobile advertising revenue?

Again, regular RTB chooses the easy way: all demand partners have to offer a fixed price for displaying their ad, and the highest bidder wins.

MADGIC is far more flexible: demand partners can pay to display an ad, when their ad is clicked, or after a specific conversion occurs. Because MADGIC is able to access all mobile advertising campaigns whatever their pricing model, it generates higher fill rates and revenue. However, MADGIC doesn’t always select the ad with the highest price, sometimes another ad will be more relevant and attractive for a specific user, thus more likely to result in a click or a conversion, and generate a higher revenue for the publisher. MADGIC also rotates ads and makes sure the same ad is not displayed over and over again.

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